Financial Services Compensation Scheme of Last Resort Levy (Collection) (Initial Cost Estimates for 2026-27 Levy Period) Determination 2025

The instrument is structured around a small set of statutory and administrative building blocks. Those concepts and how they operate in this instrument are:

• Determined estimate under subsection 9(1) of the Act: Each of ss5, 7, 9 and 11 opens with the form “Under subsection 9(1) of the Act, for the 2026-27 levy period and the [sub-sector], the determined estimate is [amount], being the sum of the following specified amounts”. The instrument therefore implements the Act’s mechanism by providing fixed monetary estimates for that statutory subsection for each named sub-sector. The instrument repeatedly ties each monetary entry to paragraph 9(1)(a) or paragraph 9(1)(b) of the Act and the subparagraphs under 9(1)(b) (see, for instance, s5(a) and s5(b)(i)-(iv)).

• Disaggregated components: For each sub-sector the determined estimate is split into at least two components: the amount for paragraph 9(1)(a) of the Act, and the amount for paragraph 9(1)(b) of the Act. The latter is further divided into the subparagraph amounts referred to in subparagraphs 9(1)(b)(i)-(iv). The instrument lists those items explicitly and provides precise cent-level figures for each component (for example, s9(a) $108,715,443.07 and s9(b)(i) $18,670,629.74).

• Excess amounts and offsets: For each sub-sector a separate provision identifies excess amounts from earlier levy periods. Subsections 6(1), 8(1), 10(1) and 12(1) record the “excess amount for an earlier levy period” applicable for the purposes of subsection 9(1) and paragraph 9(2)(a) of the Act. Subsections 6(2), 8(2), 10(2) and 12(2) record an “excess amount attributable to” each sub-sector for the purposes of subsection 9(1) and paragraph 9(2)(c) of the Act. The values for the attributable excess amounts are zeroes in each case (ss6(2), 8(2), 10(2), 12(2) are $0.00).

• Temporal and definitional anchors: The instrument defines the 2026-27 levy period as the 12 months starting 1 July 2026 (s4). It also makes an express note that this levy period is the fourth levy period (Part 2 Note 1) and that a particular component of the Act (subparagraph 9(1)(b)(iv)) does not apply for the fourth levy period, hence the instrument sets $0.00 for that line where it might otherwise appear (Part 2 Note 2 and repeated zero entries in each sub-sector’s subparagraph (iv)).

• Administrative provenance and authority: The operator’s role is explicit in the instrument’s heading and preamble, and s3 records that the instrument is made under the Act. Section 4 ties expressions to meanings in the Act and to the Financial Services Compensation Scheme of Last Resort Levy Regulations 2023 and to the Corporations Act 2001 for the term “financial services compensation scheme of last resort”, thereby linking this determination to the definitional and regulatory architecture established elsewhere.

• Narrow scope of operation: The instrument’s contents are numerical allocations and offsets; it does not purport to set levy rates, invoice schedules, liability apportionments among individual firms within a sub-sector, or enforcement rules. Those functions remain governed by the Act and Regulations the instrument cites (s3 and s4). The instrument therefore functions as a numeric input into the statutory levy machinery rather than as a stand-alone charging instrument.

These core concepts appear repeatedly across the subsectors and constitute the mechanical logic of the instrument: allocate costs and initial estimates by sub-sector (with fine-grain subparagraph breakdowns), apply earlier-period excess offsets, and thereby produce the determined estimate figures the Act requires for the 2026-27 levy period.

The instrument identifies four discrete sub-sectors as the recipients of the determined estimates: credit intermediaries, credit providers, licensed personal advice, and securities dealers (ss5, 7, 9, 11). Those sub-sectors are defined in the Financial Services Compensation Scheme of Last Resort Levy Regulations 2023, as acknowledged in s4. The instrument therefore targets the economic entities grouped within those regulatory sub-sector definitions.

Who decides: the Compensation Scheme of Last Resort Limited, as operator of the scheme, made the determination (opening paragraph and s1); s3 records that this is done under the authority of the Act. Practically, the operator’s determination fixes the numeric inputs that the Act requires before levies are collected under the Act’s levy-collection provisions.

Who pays: the instrument does not itself create a new charge or specify individual liability or payment mechanisms. Instead it supplies determined estimates for each sub-sector under subsection 9(1) of the Act (ss5, 7, 9, 11). The natural reading is that these figures will be used under the Act to calculate levies imposed on entities within those sub-sectors, but the instrument does not in itself state the legal path by which funds are collected from particular firms or persons; those mechanisms are provided in the Act and Regulations (s3, s4). Therefore, affected parties are the legal entities that fall within each sub-sector definition under the Regulations, because the instrument attributes the cost estimates to those sub-sectors.

What stage of the levy process is affected: this instrument operates at the estimate-setting stage for the 2026-27 levy period (Part 2 heading and Note 1). It therefore primarily affects entities that must plan for and budget to meet levy exposures for that levy period. The figures in ss5, 7, 9 and 11 are likely to be used by the operator and any collecting authority under the Act to produce levy notices, but the instrument itself does not issue notices.

Entities with offset protection: the instrument cites and applies excess-amount offsets from earlier levy periods against the 2026-27 determined estimates (ss6, 8, 10, 12). Where an earlier-period excess exists, it reduces the determined estimate shown for the sub-sector (explicitly the totals in ss5, 7, 9, 11 are “less the excess amounts referred to” in the relevant excess provisions). Affected entities in sub-sectors with non-zero excess offsets (for example licensed personal advice with $3,606,235.67 in s10(1), credit intermediaries with $573,244.37 in s6(1)) will see that the operator has already accounted for those earlier adjustments in the figure displayed.

Those not directly affected: the instrument does not mention other sub-sectors or classes of financial services firms. If an entity is not within the four named sub-sectors as defined by the Regulations, this instrument does not attribute costs to it and thus does not directly alter its numeric levy inputs for the 2026-27 levy period.

Timing for affected parties: the instrument commences the day after registration (s2). The 2026-27 levy period is defined to start 1 July 2026 (s4). Practically, entities in the named sub-sectors should treat these numbers as the operator’s initial cost and claim estimates for that levy period, and prepare for the levy cycle that follows from those estimates under the Act.

This determination is a numeric exercise under the Act and does not itself create new statutory duties or contractual rights beyond those established by the Act and related Regulations. Nonetheless, from the instrument’s content we can identify the immediate legal and administrative effects that create actionable obligations and expectations for the operator and for entities in each sub-sector.

Operator duties and powers:

• The operator exercises an administrative power to determine estimates for a levy period: the instrument records that Compensation Scheme of Last Resort Limited “makes the following determination” and s3 states the instrument is made under the Act. The operator has the practical duty to supply these estimates, and the instrument is the form in which that duty is discharged for the 2026-27 levy period. The Act sets the legal authority; this instrument is the operator’s implementation of that authority.

• The operator’s specification of excess amounts shows a duty to reconcile earlier-period surpluses or deficits with current-period estimates. Each excess amount provision (ss6, 8, 10, 12) is applied “for the purposes of subsection 9(1) and paragraph 9(2)(a) of the Act” or subparagraph 9(2)(c). That language records the operator’s obligation to apply statutory offset rules when calculating the determined estimate.

Duties of affected entities (as implicated by the instrument):

• Although the instrument does not itself create payment obligations, it fixes the numerical inputs that the Act will use to compute levy liabilities. Firms in the named sub-sectors have a foreseeable duty to account for any levy assessed pursuant to the Act that uses these determined estimates, and to ensure they are properly classified under the Regulations (s4 references Regulations for sub-sector definitions). Those payment duties, and the timing and procedural requirements for them, are located in the Act and Regulations rather than in this instrument.

Rights and procedural features implicit in the instrument:

• Transparency of inputs: the instrument records cent-level figures for each component of the determined estimate and for each excess amount. This precision functions as an informational right for affected sub-sectors to see the operator’s initial allocation and offset calculations for the levy period. The instrument therefore creates an evidential baseline which affected entities can rely on when reconciling later levy notices.

• The instrument notes that subparagraph 9(1)(b)(iv) of the Act does not apply to the fourth levy period and therefore sets $0.00 for that line (Part 2 Note 2). This communicates a substantive limitation of the Act’s application for the period and thereby is an implicit clarifying right for stakeholders to know that that component will not be used for the fourth levy period.

Limitations and omission of duties in this instrument:

• This instrument does not set or alter the Act’s enforcement provisions, penalty regimes, or appeal mechanisms. It does not set payment dates, methods, or allocation rules among firms within sub-sectors. Those duties and rights remain in the Act and Regulations (see s3 and s4). The instrument’s duty is limited: to provide the operator’s determined estimate numbers and specify earlier-period excesses to be applied to those figures.

Procedural effect:

• Because the instrument supplies initial estimated costs and offsets, it creates a procedural effect in the statutory levy cycle: subsequent steps under the Act that transform estimates into payable levy amounts will rely on the numbers fixed here. Affected parties’ duties to pay, and any rights to dispute or query levy calculations, will therefore become meaningful only once the Act’s subsequent procedural steps are invoked by the collecting authority.

In short, duties created or discharged by this instrument are administrative and confined to estimation and reconciliation. The binding operational duties to pay or enforce levies remain located in the Act and Regulations, which this instrument cites as its authority and definitional source (s3 and s4).

The instrument contains no provisions that create, modify, or reference penalties, sanctions, or enforcement processes. Its content is purely determinate numerics and definitional cross-references. The only statutory references that touch on enforcement are indirect: s3 states that the instrument is made under the Financial Services Compensation Scheme of Last Resort Levy (Collection) Act 2023, and s4 states that expressions have the same meaning as in that Act and in the Regulations. Any penalties, compliance enforcement, criminal or civil sanctions, audit powers, or dispute-resolution mechanisms are therefore those contained in the Act and Regulations, not in this determination.

Practical consequences of the omission:

• The instrument does not itself provide a method for collecting the amounts it lists. It supplies the initial inputs the Act requires for levy calculation. Enforcement of payment, late-payment penalties, directions to pay, or administrative recovery actions must be executed under the Act’s powers or under other relevant legislation and are not initiated by this determination.

• If an affected entity believes a determined estimate or an excess amount applied is incorrect, the instrument does not set out an appeal or review mechanism. Any rights to challenge or seek review must therefore be pursued under the processes the Act or Regulations provide, since no separate procedural protections or dispute-resolution pathways appear in this instrument.

• The instrument’s precision at the cent level implies that enforcement, when invoked under the Act, will rest on these figures as the operator’s recorded initial position. This creates an evidential role: enforcement steps that follow will likely refer back to these quantified estimates when issuing levy notices or when reconciling payments.

No immediate criminal or pecuniary penalties are triggered by the instrument itself. The absence of enforcement text means legal consequences for non-payment or non-compliance with a later-assessed levy will rely on the Act and any delegated instruments (which this instrument does not alter). A reader should therefore not expect to find penalty rates, interest on unpaid amounts, or recovery powers in this determination; those are outside its scope.

The determination is explicitly subordinate to and integrated with the Act and related Regulations. The text sets out the following legal interactions and cross-references:

• Primary statutory authorisation: s3 states that “This instrument is made under the Financial Services Compensation Scheme of Last Resort Levy (Collection) Act 2023.” The instrument therefore derives its legal force and the scope of its permissible content from that Act. Any question about the instrument’s scope, effect or legality would be resolved against the statutory parameters established by the Act.

• Definitions and regulatory cross-reference: s4 notes that expressions have the same meaning in this instrument as in the Act “as in force from time to time” and explicitly ties certain sub-sector definitions to the Financial Services Compensation Scheme of Last Resort Levy Regulations 2023. It also states that “financial services compensation scheme of last resort has the same meaning as in the Corporations Act 2001.” Those cross-references mean the instrument relies on the vocabulary and classificatory decisions made in other instruments. For instance, whether an entity falls into a named sub-sector is determined by the Regulations the instrument cites, not by the determination itself.

• Legislation Act 2003 reference: s4 contains a Note referencing paragraph 13(1)(b) of the Legislation Act 2003 to explain that expressions have the same meaning in the instrument as in the Act. While this is an explanatory legislative drafting reference rather than an operational clause, it signals that the instrument is to be read in statutory context, and that its meanings are to be aligned with the principal Act through the usual interpretive chains.

• Interaction with levy-collection machinery: though the instrument does not itself implement collection procedures, it supplies the numerical inputs required by subsection 9(1) of the Act. Therefore, any levy-collection actions, notices or schedules undertaken under the Act must be consistent with the figures fixed in this instrument. Where the Act prescribes subsequent procedural steps that convert determined estimates into levies, the instrument’s figures feed directly into that downstream process.

• Non-application of a statutory subparagraph: the instrument records that subparagraph 9(1)(b)(iv) of the Act “does not apply in relation to the fourth levy period” and therefore contains zero amounts for that line across the sub-sectors (Part 2 Note 2). This statement interacts with the Act by clarifying the Act’s limited application for this specific levy period and thereby narrows the scope of the Act’s subsection 9(1)(b) inputs for the period.

• No modification of other regimes: the instrument does not purport to alter the Corporations Act, the Legislation Act, or the Levy Regulations it cites; it simply takes their definitions and authorities as given for the exercise of setting figures. It does not create conflicts because its operation is explicitly under the Act; any inconsistency would be resolved by reference back to the Act and subordinate instruments.

In practice, the legal interaction is linear and narrowly confined: the operator uses the Act’s statutory power to make a determination that enumerates monetary estimates and excess offsets for defined sub-sectors, and those numbers are to be used as the Act contemplates. The instrument therefore sits inside the statutory levy architecture as a required numeric input, relying on definitions and authorities established elsewhere and not altering or supplanting other laws.

This instrument records its original making date and commencement arrangements, and contains no internal amendments or historical amendments to report. Relevant items in the instrument:

• Date and making authority: the front matter records the determination is made by Compensation Scheme of Last Resort Limited and dated 21 November 2025 (opening paragraph). Section 1 gives the instrument its formal name.

• Commencement: s2 specifies that “The whole of this instrument” commences on “The day after this instrument is registered.” The schedule-style table under s2 provides that commencement detail and includes the statutory drafting note that the table relates only to the provisions as originally made.

• Note on original content: s2(2) adds the standard drafting note that any information in column 3 of the commencement table is not part of the instrument, and that such information may be edited in published versions. This is a drafting formality rather than a substantive amendment history.

• No subsequent amendments recorded: the instrument contains no sections that amend or repeal earlier determinations, and there are no markings to show that it is an amending or consolidated text. It is therefore the original determination as made and registered in November 2025.

• Contextual notes: Part 2 contains two explanatory notes: Note 1 states the 2026-27 levy period is the fourth levy period, and Note 2 explains that subparagraph 9(1)(b)(iv) of the Act does not apply to the fourth levy period and therefore no amounts have been included in relation to it. Those are explanatory, not amending, notes.

• Relationship to the Act and Regulations: s4 records that expressions have the same meaning as in the Act and that certain sub-sector names “have the same meaning as in the Financial Services Compensation Scheme of Last Resort Levy Regulations 2023.” If those external instruments change, the definitions that the determination imports may shift, but this instrument contains no textual amendment provisions to respond to such changes itself.

Given the instrument’s narrow scope and the absence of any listed amendments or variations within the text, the amendment history for this instrument is limited to its original making and commencement detail. Any future changes to the numbers or to the instrument itself would appear in later determinations; there is no retroactive modification of the numbers recorded here within this instrument.

This instrument contains no recitation of litigation, and it names no cases. The text does not reference decisions, appeals, judicial review proceedings, or determinations subject to litigation. There are no internal notes or references to disputes about the numbers, nor any cross-reference to legal proceedings under the Act.

Because the instrument is a numeric administrative determination, disputes about it could, in principle, be the subject of administrative review or judicial review proceedings under the Act or general administrative law, but this instrument itself neither documents nor invokes any litigation pathway. Any party seeking to challenge the determination would need to look to the Act and applicable administrative- or judicial-review mechanisms outside of this instrument for the correct procedural route. The instrument does not provide procedural or substantive remedies and does not record any history of prior litigation involving the same or similar determinations.

In short, the determination contains no litigation history and does not record prior or ongoing legal challenges. Users and affected parties must consult the Act and wider legal framework for information on review or challenge rights and any past disputes.

Several precise technical features of the instrument can lead to practical pitfalls if overlooked. The instrument is short but the effects of omission or misreading of small items can be material in downstream levy calculations.

1. Cent-level precision: the instrument records figures to the cent (for example, s9(a) $108,715,443.07 and s9(b)(i) $18,670,629.74). Downstream levy calculations, reconciliations and accounting entries should use the exact figures provided rather than rounded approximations to avoid small but cumulative discrepancies.

2. “Less the excess amounts” language: each sub-sector’s determined estimate is stated as a gross sum “less the excess amounts referred to in subsections [relevant excess section].” That is, the totals reported in ss5, 7, 9, 11 are net of the relevant earlier-period excess offsets shown in ss6, 8, 10, 12. Failing to apply the listed excess amounts when reconciling the operator’s stated determined estimates against ledger entries will produce mismatches. Practitioners should note the separate location of the excess amounts and apply them exactly as the instrument prescribes.

3. Zero attributable excesses: each sub-sector’s subsection (2) for excess amounts records $0.00 (ss6(2), 8(2), 10(2), 12(2)). This means no part of the excess amounts is recorded as “attributable” under paragraph 9(2)(c) of the Act in this instrument. Users must therefore apply the excess amounts only in the manner reflected by subsection (1) entries, and not assume any allocation under paragraph 9(2)(c) exists for the 2026-27 levy period.

4. Non-application of subparagraph 9(1)(b)(iv): Part 2 Note 2 explicitly states that no amounts have been included in relation to subparagraph 9(1)(b)(iv) of the Act because that subparagraph does not apply to the fourth levy period. Across the four sub-sector breakdowns, the s9(b)(iv)-type items are $0.00. If downstream processes assume that a 9(1)(b)(iv) component will exist or that it will be non-zero, that will be an error for this levy period.

5. Scope limitation: the instrument does not set levy rates, individual firm allocations, billing cycles, or payment methods. Those functional details are in the Act and Regulations. A common mistake would be to treat the instrument as a levy notice or payable invoice. It is not; it is the operator’s determination of initial estimates. Affected firms must therefore await the levy notices or other instruments that implement the actual collection process.

6. Reliance on external definitions: s4 imports sub-sector definitions from the Regulations and references the Corporations Act for the meaning of the scheme. If a firm’s classification into a sub-sector is uncertain, the firm must consult the Regulations rather than rely on this instrument, because this determination does not itself define membership of a sub-sector.

7. Effective date and timing: s2 provides that the instrument commences the day after registration, and s4 defines the levy period as beginning 1 July 2026. Practically, those two dates may be relevant to exercise of rights and obligations in the levy cycle. For instance, companies budgeting for the 2026-27 levy period must account for a levy period start date of 1 July 2026 even if the instrument’s registration and commencement occur earlier or later.

8. Narrow remedial content: the instrument contains no appeals, review or correction procedure. If stakeholders have concerns about the figures, they should not expect the determination itself to offer a correction mechanism. Any correction process must be sought under the Act or by engaging with the operator.

9. Fourth levy period specifics: Note 1 informs readers that the 2026-27 levy period is the fourth levy period. Some statutory provisions or practical arrangements applicable in earlier or later levy periods might not apply in the same way here, as the instrument already signals in Note 2. Practitioners should therefore avoid importing reading assumptions from other levy periods without checking this instrument’s Notes and the statutory text.

10. No litigation or appeal history recorded: because no disputes or clarifying adjudications are provided in the instrument, affected parties cannot rely on precedent or prior determinations to interpret ambiguous line items here. Interpretation must therefore be grounded in the Act and the exact wording and figures of this determination.

Attending to these technical points will reduce the risk of misapplication when these figures are used to calculate levies or when reconciling accounting and budgetary forecasts for the 2026-27 levy period.

This determination is an input into the statutory levy cycle rather than a standalone compliance instrument. Compliance actions for stakeholders should therefore focus on three practical tasks: verify classification, incorporate the figures into financial planning, and monitor subsequent procedural steps under the Act and Regulations that convert these estimates into payable levies. The following concrete steps are drawn from the instrument’s content.

1. Verify sub-sector classification against the Regulations (s4):

• The instrument attributes amounts to four named sub-sectors: credit intermediaries, credit providers, licensed personal advice, and securities dealers (ss5, 7, 9, 11). Entities should confirm which, if any, of these sub-sectors they fall within by reference to the Financial Services Compensation Scheme of Last Resort Levy Regulations 2023, because the determination imports those definitions (s4). Classification determines exposure to any downstream levies calculated from these figures.

2. Record and reconcile the exact figures:

• Capture the cent-level figures stated in the instrument for whatever internal budgeting, forecasting, or compliance records you maintain. The operator provides precise numbers for each component (for example, s9(a) $108,715,443.07; s9(b)(i) $18,670,629.74). Reconcile these with any later levy notices that you receive, because subsequent levy notices under the Act are likely to refer back to these determined estimates as the operator’s initial position.

3. Apply excess-amount offsets as shown:

• If you are reconciling aggregate or sector-level numbers, be sure to apply the excess amounts in ss6(1), 8(1), 10(1), and 12(1) as the instrument indicates. The determined estimates in ss5, 7, 9, 11 are stated after subtracting the excess offsets referred to in those excess provisions. Do not assume attributable excesses under paragraph 9(2)(c) of the Act are present here; each subsection (2) records $0.00.

4. Allow for the levy period dates and commencement (s2 and s4):

• The 2026-27 levy period is defined to start 1 July 2026 (s4). This is the operative period for which these estimates are prepared. Take this into account for budgets, cashflow planning and any contractual arrangements tied to financial-year timing. The instrument itself commences the day after registration (s2); that is the date from which the determination’s legal existence starts.

5. Anticipate further steps under the Act:

• This determination does not issue invoices or set payment schedules. Firms should expect further action under the Act to translate these determined estimates into invoices or levy notices. Monitor communications from the operator and any collecting authority that acts under the Act for notices, allocation details among firms within a sub-sector, due dates, and payment instructions.

6. Maintain audit trails and challenge readiness:

• Because the instrument’s figures are precise and will be used as evidential inputs, preserve documentation showing any reasons you contest your classification, or any calculation errors you identify in later levy notices. The instrument itself contains no internal appeal mechanism, so any challenges will need to be pursued under the Act’s processes or by engaging with the operator.

7. Update internal financial controls:

• Given the scale of the amounts for some sub-sectors (for example licensed personal advice $126,851,045.47 in s9), entities that represent a material share of a sub-sector may wish to model the potential levy impact on their own balance sheet and cashflow. While the instrument does not say how the amounts will be allocated to individual firms, large or concentrated sector participants should engage early with the operator or industry groups to understand expected allocation approaches under the Act.

8. Watch for subsequent determinations or instruments:

• The instrument is expressly the “Initial Cost Estimates for 2026-27 Levy Period.” If the Act allows later adjustments or further determinations in the levy cycle, those later instruments could alter the numeric baseline. Keep a watch for any subsequent determinations, corrections or statements from the operator.

9. Seek clarification where definitions are uncertain:

• Where a firm’s membership of a sub-sector is unclear because of mixed activities or unusual business models, obtain a written position from the operator or rely on the Regulations’ definitions before assuming exposure. The instrument defers classification questions to the Regulations (s4), and misclassification can cause forecasting and compliance errors.

10. Coordinate with auditors and tax/compliance advisers:

• Because these determined estimates will feed into statutory levies, ensure accounting and compliance teams incorporate the figures into relevant provisions, accruals, and disclosures in financial statements as appropriate under accounting standards and in consultation with auditors. The instrument’s numbers should be used as the operator’s initial estimate pending the Act’s implementation steps.

Following these concrete steps will align internal processes with the narrow but material effects of this determination: it sets the numeric inputs that the statutory levy machinery will use for the 2026-27 levy period.